Land market launch to raise its value fivefold – forecast

The kick-off of the land market in Ukraine is proceeding according to plan, and over the next five to ten years, the price of land plots may increase significantly, says Prime Minister Denys Shmyhal.

“Everything is going according to plan, thanks to the Verkhovna Rada. In an extremely difficult process, Bill 2194 has been passed, and now we expect Bill 2195 to be adopted, which will open up the possibility of e-trading in land," Shmyhal told RBC-Ukraine.

"We are looking at the analogy, at how the land market was introduced by our neighboring states. Within five to ten years, the cost of land can double or even increase fivefold," said Shmyhal.

The rise in land prices would have a positive effect on the country's capitalization, PM believes.

"This is a very good thing because it capitalizes our state and the land Ukrainians own. Ukrainians will receive the right, not the obligation, to sell their land. And the right allows for decision-making. As the land rises in price, sell it at a high market value with no corruption tax imposed by officials when there was no land market," said the government head.

"Therefore, I'm sure that from July 1, we must open the market and learn to live with it. It will definitely enrich our state, economy, and our people," Shmyhal said.

Read alsoEU welcomes Ukraine's bill on decentralized land managementLand reform in Ukraine: Background

• On November 15, 2019, the Verkhovna Rada adopted at first reading a comprehensive bill on deregulation in the field of land relations (No. 2194).
• The document is considered important for land reform and the full launch of the land market in Ukraine. However, its final adoption had long been delayed.
• On April 28, 2020, President Volodymyr Zelensky signed into law the bill introducing the land market in Ukraine from July 1, 2021.
• On February 19, 2021, the National Geospatial Data Infrastructure (NGDI) project was presented to President Zelensky. The head of state believes the project will contribute to having all related processes and data in the country go digital
• NGDI is a system systematizing data on land, water, forests, natural resources, infrastructure, and communications) on a single cartographic basis, providing users with easy search tools and unhindered access to any data at the national, regional, and local levels.
• On April 28, 2021, the Verkhovna Rada adopted a comprehensive law on deregulation in the field of land relations, which amends the Land Code and contains more than 100 articles, including on transfer of state-owned lands to local communities and revising the powers of the State Service for Cartography, Geodesy and Cadastre.